WRAPUP 1-Brazil raises G20 stakes on IMF funding pledge

* Brazil says fresh IMF cash hinges on reforms

* Mexico says action plan to help Europe, boost global
growth

* Germany says G20 should not confine itself to euro woes

By Luciana Otoni and Krista Hughes

BRASILIA/MEXICO CITY, June 12 Brazil raised the
stakes ahead of next week's Group of 20 summit on Tuesday by
saying it may cap its contribution to a planned funding increase
for the International Monetary Fund unless there are firm
promises to give emerging markets more say at the international
table.

While summit host Mexico urged Europe to quickly finalize
details of aid for Spain's banks, Brazil said it might
contribute less than it had planned to the extra $430 billion
promised to the IMF by member states in April to help fund
heavily indebted euro zone countries.

The euro zone sovereign debt crisis is set to dominate the
June 18-19 G20 leaders' meeting in Los Cabos as it did the last
summit in Cannes, France, six months ago. The meeting starts a
day after Greek elections which could decide whether the country
stays in the euro zone.

The G20, created in 1999 after the Asian financial crisis as
a way to forge stronger links between developed and emerging
economies, was promoted to be the No. 1 global policymaking body
after the 2008 financial crisis but its authority has been
undermined since as countries pursued their own domestic
agendas.

Brazil made it clear it would use the meeting to insist on
more say at the IMF. Voting power at the IMF is currently
dominated by the United States and other developed powers.

"We are frustrated because we see that countries that know
they will lose influence are resisting the (quota) formula,"
said a senior Brazilian government official, who declined to be
named to speak more freely. "The amount of additional resources
remains open. It could be more than $10 billion or less."

The European Union has said it would reduce the number of
seats it holds on the IMF board by two in the autumn this year,
but G20 sources who spoke to Reuters on condition of anonymity
were pessimistic about a firm agreement by then.

China, India, Russia and Mexico are among countries yet to
say how much they will commit to lend the IMF, although final
pledges are due at the Los Cabos summit.

A European source said countries were waiting to see how
much China would contribute and on what conditions. China is
said to be considering a $60 billion pledge.

The so-called BRICS nations of Brazil, China, India, Russia
and South Africa are due to meet privately on June 18, the
Brazilian official said.

The IMF reform package be finalized through until the U.S.
Congress approves the move, something that is highly unlikely
ahead of November elections because it would require the
authorization of additional funding for the IMF.

GROWTH ACTION PLAN

Although markets are skeptical about a deal by euro zone
finance ministers last Saturday to lend Spain up to 100 billion
euros ($125 billion) to recapitalize its banks, Mexican
President Felipe Calderon said the move could mark an important
step towards resolving the region's debt crisis.

"The decisions which were announced at the weekend ...
really do open the door to finding a solution to the case of
Spain and at the same time making an enormous step towards
resolving Europe's economic problems," he told reporters at a
news conference in Mexico City. "I would argue for these
proposals to be firmed up quickly."

Calderon said the leaders aimed to come up with a
Cannes-style action plan to support global growth, but did not
elaborate on potential measures.

"(The action plan) will not only include measures to
confront and resolve the European crisis, which is ultimately an
economic crisis, but will also put forward concrete measures on
public policy in key areas in the realms of tax, finance and
monetary policy, which will help to boost global growth in the
long term," he said.

A European source said the plan might include commitments to
roll back austerity budgets in certain countries, but it was too
early for Europe to give specifics on its economic growth pact
because of an EU summit on June 28-29.

There is a growing push in the euro zone, led by newly
elected French President Francois Hollande, to do more to
stimulate economic growth and not just focus on reducing fiscal
deficits.

Hollande may well go into the G20 meeting with increased
authority to push a growth agenda as his Socialist party is
expected to win a parliamentary majority at a run-off vote on
June 17.

Austerity advocates Germany, meanwhile, were keen to put
some of the focus on other potential problem areas such as the
planned combination of tax rises and spending cuts due to hit
the United States later this year, dubbed the "fiscal cliff".

"The euro zone will surely be a topic, but as Europeans we
also want to talk about other themes related to the global
economy that go beyond the euro zone, for example budget
consolidation in the United States, currency flexibility in
China and structural reforms in emerging markets," a German the
officials told reporters.

"We think when talking about global growth it is important
to look beyond the euro zone, not to limit the discussion to
Europe."

German officials also made clear they wanted to separate a
discussion over resources for the IMF and a debate on reforming
voting powers in the global lender, putting Germany at odds with
Brazil.

Reuters is the news and media division of Thomson Reuters. Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Learn more about Thomson Reuters products: